@TechReport{iza:izadps:dp12701,
            	author={Rablen, Matthew D.},
            	title={Foundations of the Rank-Dependent Probability Weighting Function},
            	year={2019},
	month={Oct},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={12701},
            	url={https://www.iza.org/publications/dp12701},
	abstract={The psychological basis for rank-dependent probability weighting, and for an inverse-S probability weighting function (PWF) in particular, has often been questioned. I examine the existence and shape of the PWF in a model allowing for optimism/pessimism over probability distributions and for loss averse/gain loving stochastic reference dependence. I give commonly observed shapes of PWF a psychological interpretation. In particular, I establish a deep connection between two of the most established phenomena in decisionmaking: loss aversion and the inverse-S PWF: the former is a pre- condition for the latter.},
	keywords={probability weighting;rank dependent expected utility;loss aversion;reference dependence;optimism;pessimism},
            }